ways to Determine The Sterling Silver Per Ounce Prices?
There are several rates for silver jewelry at different retailers. The price differentiation can add up to 2-3 times at distinct retailers. Do you know exactly why? Ever thought of how these retailers mark up the jewelry after they receive them from the venders? Below, we will give you an insight about the trading secrets of sterling silver jewelry.
The most important factor in determining the sterling silver per ounce price is by finding the value/gram of silver. Silver is considered a valuable metal because it is a fundamental raw material what makes the cost of a small piece on a jewelry very high. Let's say, the value of silver is $9. 5/ounce; the value per gram is evaluated by dividing the price per ounce by 31. 5, which is equal to 30 cents. So the price for the raw material of a 5gm wedding ring is approximately $1. 5. It might be a surprise to some people who pay $30 for a silver wedding ring where the silver merely cost $1. 5. 1 3 cup to oz
The following costs will elaborate further the difference in price:
The Cost of Labor
To transform raw silver into a finished item involves a massive deal of work. The metal primarily has to go through melting process. Then it is molded, polished and lastly assembled. The silver jewelry is often embedded with different stones. The costs for implanting the stones into the jewelry make a major difference in the overall cost because the need of hi-rated craftsmanship.
Additional Materials
Moreover, the costs of any extra materials who are attached to the jewelry also adds to the total cost of jewelry. For example, a set of silver pearl dangle earrings that have been made with two cultural water pearls with a rhodium finish, will double the price of silver earrings. The point to be noted here is the added cost of rhodium, which is usually higher than the price of silver itself.
Shipping Cost
There are some styles of jewelry that are imported from distinct countries as well as the unavailability of raw materials like the embedded stones. Accordingly, the cost for shipping and transporting these items will also take an important part of the jewelry cost. In most cases, the shipping cost for an imported sterling jewelry can add up to 10% of the total costs of the jewelry itself.
Custom Duties
For the reasons mentioned above, imported jewelry would also incur costs of custom taxes. This cost is as well not known by the consumers. However, it increases the price of the sterling silver per ounce in 5%-10%.
Price's Variation
There are silver jewelry traders, in particular, wholesale dealers, who would combine the cost of the jewelry with the growing price of the silver on the market. For this reason, the price of the sterling silver per ounce jewelry varies every month, and in some cases it changes on the daily basis.
General Expenses Of Business
As with any other business, the sales also have to cover the indirect expenses of operating a business. Generally, the overheads' costs include worker's salaries, utilities, rent and breakage.
Profit
And yes the prices you pay for sterling silver per ounce jewelry have to include the profile of the retailer as well.
I hope that the above review will help you make more calculated decisions before purchasing sterling silver jewelry and also help to avoid from any scams.
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